Casa Adalia

June, 2017Archive for

What kind of loan is this?

Tuesday, June 20th, 2017

Is it a personal loan? The benefit of having the actual student loan is that this kind of debt has the benefit of (1) cancelling out when one dies, (2) being eligible for deferment or forebearance if needed.

Personally, I think that the better plan would be to just pay the $450 each month on the current loan.

I say keep the payments due lower

Thursday, June 8th, 2017

There is no guarantee for the future. And, she can always make higher payments (snowball). That is what is saving the interest—paying them off quicker.

Helen

P.S. I speak from experience. My hubby and I were making good money–I changed my student loans to higher payments. Then, I lost my very secure teaching job—and got behind. It took me forever to straighten it out. Had I kept the payments smaller—we could have made the monthly payment during the job loss and not had to worry about it.